SEHK:410

Stock Analysis Report

Executive Summary

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in China.

Snowflake

Fundamentals

Fair value with questionable track record.

Risks

  • SOHO China has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has SOHO China's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.9%

SEHK:410

-1.1%

HK Real Estate

-1.3%

HK Market


1 Year Return

-34.7%

SEHK:410

-10.1%

HK Real Estate

-15.9%

HK Market

410 underperformed the Real Estate industry which returned -10.1% over the past year.

410 underperformed the Market in Hong Kong which returned -15.9% over the past year.


Share holder returns

410IndustryMarket
7 Day-3.9%-1.1%-1.3%
30 Day-3.9%-1.4%-2.7%
90 Day-24.4%-7.1%-10.1%
1 Year-33.8%-34.7%-6.8%-10.1%-12.9%-15.9%
3 Year1.2%-30.9%68.2%51.7%32.4%19.1%
5 Year-16.9%-57.2%81.3%50.8%25.3%4.6%

Price Volatility Vs. Market

How volatile is SOHO China's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SOHO China undervalued based on future cash flows and its price relative to the stock market?

5.91x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

SOHO China's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

SOHO China's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

SOHO China is good value based on earnings compared to the HK Real Estate industry average.

SOHO China is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

SOHO China earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

SOHO China is good value based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

How is SOHO China expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

-26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SOHO China's revenue is expected to grow by 19.3% yearly, however this is not considered high growth (20% yearly).

SOHO China's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

SOHO China's revenue growth is expected to exceed the Hong Kong market average.

SOHO China's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

SOHO China's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

SOHO China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has SOHO China performed over the past 5 years?

-23.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SOHO China's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

SOHO China's 1-year earnings growth is negative, it can't be compared to the 5-year average.

SOHO China's 1-year earnings growth is negative, it can't be compared to the HK Real Estate industry average.


Return on Equity

SOHO China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

SOHO China used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

SOHO China has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SOHO China's financial position?


Financial Position Analysis

SOHO China is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SOHO China's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

SOHO China's level of debt (59%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (45% vs 59% today).

Debt is not well covered by operating cash flow (1.7%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

What is SOHO China's current dividend yield, its reliability and sustainability?

3.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

SOHO China's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).

SOHO China's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).

SOHO China has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

SOHO China has only been paying a dividend for 9 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (12.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of SOHO China's salary, the management and board of directors tenure and is there insider trading?

10.9yrs

Average management tenure


CEO

Shynn Zhang (53yo)

12.3yrs

Tenure

CN¥3,127,000

Compensation

Mrs. Pan Xin Zhang, also known as Marita, serves as the Chief Executive Officer of Soho China Ltd. Ms. Zhang Co-founded Soho China Ltd. in 1995. She serves as an Executive Director of Soho China Ltd. Mrs.  ...


CEO Compensation Analysis

Shynn's remuneration is about average for companies of similar size in Hong Kong.

Shynn's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

10.9yrs

Average Tenure

48yo

Average Age

The average tenure for the SOHO China management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.1yrs

Average Tenure

55yo

Average Age

The tenure for the SOHO China board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Shiyi Pan (55yo)

    Chairman of the Board & Co-Founder

    • Compensation: CN¥3.98m
  • Shynn Zhang (53yo)

    CEO, Executive Director & Co-Founder

    • Tenure: 12.3yrs
    • Compensation: CN¥3.13m
  • Ni Kuiyang (41yo)

    CFO & VP

    • Tenure: 10.9yrs
  • Sau Ping Wong (43yo)

    Company Secretary

    • Tenure: 0.7yrs
  • Ling Xu

    Investor Relations Officer


Board Members

  • Qiang Chang Sun (61yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥283.00k
  • Jingsheng Huang (60yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: CN¥118.00k
  • Shiyi Pan (55yo)

    Chairman of the Board & Co-Founder

    • Tenure: 12.3yrs
    • Compensation: CN¥3.98m
  • Shynn Zhang (53yo)

    CEO, Executive Director & Co-Founder

    • Tenure: 12.3yrs
    • Compensation: CN¥3.13m
  • Jeff Xiong (53yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥283.00k

Company Information

SOHO China Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SOHO China Limited
  • Ticker: 410
  • Exchange: SEHK
  • Founded: 1995
  • Industry: real estate operating companies
  • Sector: real estate
  • Market Cap: HK$12.877b
  • Shares outstanding: 5.19b
  • Website: Click here

Number of Employees


Location

  • SOHO China Limited
  • Tower A, Chaowai SOHO
  • 11th Floor
  • Beijing
  • 100020
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
410SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1970
45SDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1970
SOHO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1970
410SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1970
410SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1970

Biography

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in China. The company operates in two segments, Properties Develop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/18 12:48
End of Day Share Price2019/06/17 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.